Delhivery shares climbed as much as 9.7% to ₹423.35 on the BSE after the logistics company swung to a consolidated net profit of ₹40.6 Cr in Q2 FY27
Equirus Securities upgraded the stock to ‘Long’ from ‘Reduce’, citing market share gains, improving part truckload margins, and operating leverage, with a target price of ₹505
Operating revenue rose 19.8% YoY to ₹3,066.4 Cr, while express parcel volumes increased 32.1%
Shares of Delhivery
jumped 9.7% to an intraday high of ₹423.35 on the BSE after the logistics company reported a consolidated net profit of ₹40.6 Cr in Q2 FY27, against a net loss of ₹50.5 Cr a year earlier.
The stock later pared some gains to trade 7.6% higher at ₹415.40 apiece at 12:12 IST. The company’s market capitalisation stood at ₹31,135.2 Cr (about $3.3 Bn) at the time.
Brokerage firm Equirus Securities upgraded Delhivery to ‘Long’ from ‘Reduce’, with a target price of ₹505. This implies an upside of 30.8% from the stock’s previous closing price of ₹386.
Equirus expects Delhivery’s revenue, EBITDA, and express parcel volumes to grow at compound annual growth rates of 21%, 39%, and 22%, respectively, between FY26 and FY29, driven by market share gains, improving part truckload (PTL) margins, and operating leverage.
The brokerage estimates revenue of ₹12,963.3 Cr in FY27 and ₹15,107.3 Cr in FY28, with net profit of ₹381.4 Cr and ₹694.5 Cr, respectively.
Delhivery’s consolidated operating revenue rose 19.8% to ₹3,066.4 Cr in Q2 FY27 from ₹2,559.3 Cr a year earlier. Sequentially, revenue increased 4.6% from ₹2,930.7 Cr.
Including other income of ₹66.6 Cr, total income stood at ₹3,133 Cr, compared with ₹2,651.5 Cr in Q2 FY26.
Total expenses increased 14.2% to ₹3,093 Cr from ₹2,708.1 Cr. Freight, handling, and servicing costs, its largest expense head, rose 19.1% to ₹2,195.1 Cr.
The company posted a pre-tax profit of ₹39 Cr against a loss of ₹53.2 Cr a year earlier. A net tax credit of ₹1.6 Cr took its consolidated net profit to ₹40.6 Cr.
However, Delhivery’s acquisition of Ecom Express affected the comparison. Excluding the acquisition impact, the company said its net profit in Q2 FY26 and Q1 FY27 would have stood at ₹59 Cr and ₹62 Cr, respectively.
Delhivery’s express parcel volumes rose 32.1% YoY to 325 Mn shipments, driven by market share gains and customer demand. Equirus said growth exceeded its FY27 guidance of 20-30%.
PTL volumes increased 14.2% to 5.45 Lakh metric tonnes, while revenue grew 23.2% on higher volumes and yields. Equirus attributed less than 30% of the yield increase to inflation-linked pricing revisions.
Adjusted EBITDA rose 48% YoY to ₹123 Cr, with margins improving to 4% from 3.3%.
Supported by pricing revisions and higher network utilisation, Delhivery expects express parcel service EBITDA margins to reach 16-18% and PTL margins to exceed 15% by FY27-end. Overall transportation margins are expected to expand 130-150 basis points during FY27.
Delhivery Local Revenue Run Rate Doubles To ₹200 Cr
Delhivery is expanding its intra-city, international, and financial services businesses. Delhivery Local operates across Delhi NCR, Bengaluru, Mumbai, Hyderabad, Ahmedabad, Jaipur, Pune, and Chennai. Its annualised revenue run rate doubled sequentially to around ₹200 Cr in Q2 FY27.
The company raised the platform’s FY27 exit run rate target to ₹280 Cr from ₹250 Cr, targeting ₹800-1,000 Cr in annualised revenue within two years.
Its board also approved an equity investment of up to ₹36 Cr in wholly owned subsidiary Delhivery Fintech Distribution, supporting financial product distribution across its vendor network and co-lending partnerships.
Delhivery said AI automation cut customer support and proof-of-delivery validation costs by over 50% without affecting quality. It has begun manufacturing customised autonomous mobile robots through Delhivery Labs and plans to deploy 100 self-developed autonomous pallet transportation vehicles by Q4 FY27.
October volumes exceeded the company’s initial expectations.
Source: Inc42
